Senators Mark Begich, an Alaska Democrat, and John Thune, a South Dakota Republican, have introduced a proposal to stop bonuses for Fannie Mae and Freddie Mac executives.
The proposed bill follows a series of events from November of 2011, when reports surfaced that the Federal Housing Finance Agency (FHFA) approved nearly $13 million in bonus pay for ten executives at Fannie Mae and Freddie Mac. In response, Mr. Begich and Mr. Thune put forth a bipartisan letter, signed by a total of 60 senators, to Treasury Secretary Timothy Geithner, expressing outrage over the bonuses.
“Our goal is to make sure the reckless and outrageous bonuses issued to Fannie and Freddie execs last year are never repeated and remain a history lesson on abuse of taxpayer money,” Mr. Begich said in a statement Wednesday. “The two agencies have received over $150 billion in taxpayer funds since 2008, and those executives should not be living like fat cats while many Alaskans and other Americans are struggling to pay their bills, send their kids to college, and make the mortgage payment.”
“It is unbelievable that Congress needs to step in and end these outrageous salaries for Fannie Mae and Freddie Mac executives,” said Mr. Thune. “The American taxpayers have already bailed out these agencies to the tune of over $150 billion and should not be on the hook for millions of dollars in exorbitant salaries.”
Fannie Mae and Freddie Mac have cost U.S. taxpayers more than $150 billion in aid since 2008, when they were taken into conservatorship as they teetered on the brink of collapse after investing in risky mortgages.
